THE company running Studley Castle for former Rover boss John Towers and his fellow Phoenix Four directors has pulled the plug .

THE company running Studley Castle for former Rover boss John Towers and his fellow Phoenix Four directors has pulled the plug .

Up to 60 staff at the plush hotel and conference centre, which is in the process of being sold by Phoenix Venture Holdings, now face an uncertain future.

Employees were called to a meeting with bosses of catering and cleaning company OCS on Friday, but left with no idea who would take over the running of the complex after August 26.

Further confusion was sown by rumours that two potential buyers had pulled out over fears that the Victorian building needed structural underpinning, and the work would be prohibitively expensive because of its Grade II-listed status.

Proceeds from the sale of the property was pledged by the Phoenix directors to an MG Rover workers' trust fund in the aftermath of the Birmingham car maker's collapse in April.

The 57-bedroom hall, set in 28 acres of lush Warwickshire countryside, was put on the market last month with an asking price of #5 million.

One worker at the castle, who declined to be identified, claimed staff had been "lied to" when told in April that no one would be laid off following the Longbridge crisis - only to see two managers and the head gardener go.

The source said: "The feeling among staff is one of fear and trepidation for the future. It is a complete and utter nightmare."

An OCS spokeswoman refused to discuss why the company had pulled out, saying the commercial details of the contract were confidential.

"OCS can confirm that notice has been served to Phoenix Venture Holdings Ltd and that the contract with Studley Castle will be terminated on August 26, 2005.

"The company is now entering a period of consultation with both Phoenix Venture Holdings and affected staff before any further decisions are taken."